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AGENDA ITEM 9.5 Eastern Bay of Plenty Regional Leadership Group

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AGENDA ITEM 9.5 Eastern Bay of Plenty Regional Leadership Group AGENDA ITEM 9.5 Eastern Bay of Plenty Regional Leadership Group Report Page 3 - Agenda Item 9.5 - Eastern Bay of Plenty Regional Development Project Page 5 - Appendix 1 - Summary - Eastern Bay of Plenty Regional Development Project Page 15 - Appendix 2 - EBOP Regional Development Report Page 87 - Appendix 3 - Letter from Kiri to RGLG Members 11 Sept 2018 Page 1 of 89 Page 2 of 89 Report To: Regional Council Meeting Date: 27 September 2018 Report From: Namouta Poutasi, Acting General Manager, Strategy & Science Eastern Bay of Plenty Regional Development Project Executive Summary At full council meeting on 6 September, David Cunliffe (Stakeholder Strategies) presented on the ‘Eastern Bay of Plenty Regional Development Project’. The project team also prepared associated reports for public release, staff are seeking endorsement of these reports from council. Recommendations That the Regional Council: 1 Receives the report, Eastern Bay of Plenty Regional Development Project; 2 Endorse the ‘Eastern Bay of Plenty Regional Development reports (Summary and Full); 3 Assign the BOPRC Chief Executive delegated authority to approve minor amendments to final report, prior to public distribution. 1 Background At full council meeting on 6 September, David Cunliffe (Stakeholder Strategies) presented on the ‘Eastern Bay of Plenty Regional Development Project’. This presentation highlighted how the EBOP can collectively address economic opportunities, leveraging the Provincial Growth Fund (PGF) for the Eastern Bay to address key employment and wider social issues in the Eastern Bay. As part of the project, the team prepared three pieces of collateral: - Eastern Bay of Plenty Regional Development Presentation (as presented on 6 September 2018) - Eastern Bay of Plenty Regional Development Summary Report (8 Pages). See Appendix 1. Page 3 of 89 - Eastern Bay of Plenty Regional Development Full Report (70 pages). See Appendix 2. To date this presentation and reports have not been publicised, as councils and iwi had not formally endorsed. A letter is being prepared by Kiri Allen, seeking endorsement of this report from councils and for feedback on the specific opportunities from iwi. At time of writing this report, we have not received this letter. A draft of this letter is attached in Appendix 3. 2 Council’s Accountability Framework 2.1 Community Outcomes This project/proposal directly contributes to the Vibrant Community Outcome in the council’s Long Term Plan 2018-2028. 2.2 Long Term Plan Alignment There is no work to as part of the Long Term Plan 2018-2028. However there is funding contained within the Regional Infrastructure to support Ōpōtiki Harbour, and there is resources as part of the Regional Economic Development as part of Bay of Connections. Ian Morton Strategy & Science Manager for Acting General Manager, Strategy & Science 24 September 2018 Click here to ent er t ext . Page 4 of 89 APPENDIX 1 – Summary – Eastern Bay of Plenty Regional Development Project Page 5 of 89 Page 6 of 89 1 Page 7 of 89 A collaborative approach to regional development The Mayors of the Eastern Bay of Plenty’s three Councils – the Ōpōtiki, Kawerau and Whakatāne District Councils – have joined together with the Bay of Plenty Recommendations Regional Council, iwi across the region and Toi-EDA (the sub-region’s economic 1. Support and progress the region’s four catalytic infrastructure clusters development agency) to form a Regional Growth Leadership Group (RGLG). (see pg 4) 2. Provide capability and capacity support for EBOP projects Led by Kiri Allan MP and Sir Michael Cullen, the purpose of the RGLG is to: 3. Support the development of regionally-connected plans to alleviate labour, . Collaborate across the region and prepare a cohesive story for the EBOP in transport and housing constraints relation to economic growth development 4. Continue close working relationships across the region, including councils, iwi . Prioritise economic opportunities and communities. Identify constraints/barriers . Bring a united governance approach to decision-making RGLG members are working to integrate and quantify the region’s investment . Inform collaborative regional planning opportunities, based on robust economic analysis, and that work will support the . Collaborate with Iwi and industry finalisation of business cases and funding applications for projects which will transform the regional economy. AND . Work with Government to facilitate Provincial Growth Fund applications for projects which will – Create real, sustainable jobs Lift the region’s GDP Address the factors which have placed the region at the top of Aotearoa’s deprivation rankings. A report on the Eastern Bay of Plenty’s regional development opportunities, prepared by leading consultancy Stakeholder Strategies, was presented to Government Ministers during a recent visit hosted by the RGLG. It detailed a diverse range of significant projects, quantified the benefits that Provincial Growth Fund investment would generate in terms of jobs and GDP growth, and made the following recommendations for Government consideration. 2 Page 8 of 89 3 Page 9 of 89 Immediate priorities The Eastern Bay of Plenty’s economic and non-economic statistics present a Catalysts for job growth challenging situation for local and central Government. The region’s GDP has lagged the rest of the Bay of Plenty’s and New Zealand’s by more than 70 percent, median incomes are between 15 and 40 percent lower than the national average, The region has a massive opportunity to lift jobs and growth, with more than 65 and unemployment is substantially higher. Kawerau and Ōpōtiki are highly projects identified across the Eastern Bay (see facing page), in a range of existing deprived districts, where all residents live in DHB-assessed decile 7-10 areas (10 and developing industry sectors. represents the highest level of deprivation). Most communities in the Whakatāne Four clusters of catalytic infrastructure and connected development projects have District are also considered to be highly deprived. The high levels of social been identified as immediate priorities for PGF investment, together with dysfunction associated with high deprivation result in significant human and fiscal capacity support to facilitate future projects. Individually and in combination, the costs. For example, in the Eastern Bay, the Government currently spends $88 projects will be a catalyst for significant job and GDP growth. million per annum on Jobseeker benefits and social services. ‘Business as usual’ projections for GDP and job growth for the five years until Those clusters are: 2022 indicate that if nothing changes, Government-funded social services will be 1. Ōpōtiki Harbour and Aquaculture - the largest attributable job creator – is a the single largest contributor to growth. relatively resource-efficient project; note that the development of the Expected EBOP GDP & Job Growth Whakatāne wharf is not a substitute for this project 2. Kiwifruit and other horticulture irrigation clusters are job-rich and provide high potential leverage to PGF investment 3. Kawerau Putauaki Industrial Development (KPID) supports a large-scale commercial manufacturing cluster, where PGF funding will create valuable job and output expansion 4. Whakatāne tourism and wharf development provides a long-term focus on regional tourism services development. Capacity and capability support will be needed to facilitate the next tranche of projects, many of which are iwi-led. Investment is also required to address constraints in workforce development, housing and infrastructure. 4 Page 10 of 89 5 Page 11 of 89 The future Analysis of the 65-plus identified projects around the Eastern Bay of Plenty The projects also align with the aspirations of iwi seeking improved social and indicates that they have the potential to dramatically transform the region’s economic opportunities, following Treaty settlements. economic future. Projects cover a diverse range of activities, including horticulture (kiwifruit and berries), mānuka processing, aquaculture (seafarms The RGLG members and iwi and industry partners are committed to advancing and processing), marine services, tourism and cultural developments, wood the region’s outstanding development opportunities and addressing the manifest processing, dairy processing, water bottling, native forestry (nursery and re- deprivation factors afflicting our people. afforestation), and road and rail infrastructure. Estimated Eastern Bay of Plenty economic growth In total, these projects represent a potential increase of more than 7000 local (2000-2017 actuals, 2018-2030 projections) direct and indirect jobs, contributing an additional $690 million a year to our GDP by 2030 and adding diversity and resilience to our economy. 3.0 GDP growth ($bn) The four core project clusters described on page 4 – Ōpōtiki Harbour and 2.5 Aquaculture; High-value Horticulture on Māori land; Kawerau Putauaki Industrial Development; and Whakatāne tourism and wharf development – are well 2.0 developed, with business cases being finalised for PGF funding. All are catalytic infrastructure projects which will unlock wider developments – materially advancing an estimated 32 other projects – and accelerate economic 1.5 transformation in the region. 1.0 The graphs on the facing page indicate the direct and indirect impacts each of the core projects will bring to the region. 0.5 If all of the projects receive funding, their combined outcomes will have a 0.0 profound effect on the Eastern Bay of
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